View source for Shrinkflation

{{Short description|Reduction of quantity/quality of a good without corresponding price reduction}}
{{Use dmy dates|date=September 2023|cs1-dates=y}}
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| caption2 = 2016 Toblerone bar from the United Kingdom with larger gaps between peaks, using 10% less chocolate<ref name="toblerone"/>
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{{Macroeconomics sidebar}}

In [[economics]], '''shrinkflation''', also known as '''package downsizing''', '''weight-out''',<ref name=":2">{{cite web |title=More than 2,500 products subject to shrinkflation, says ONS |url=https://www.bbc.co.uk/news/business-40703866 |publisher=[[BBC News]] |url-status=dead |archive-url=https://web.archive.org/web/20170724104410/http://www.bbc.co.uk/news/business-40703866 |archive-date=2017-07-24}}</ref> and '''price pack architecture'''<ref name=":3">{{cite web  |author=J. Edward Moreno |title=What's a fancy name for shrinkflation? | url=https://www.nytimes.com/2024/05/31/business/what-is-price-pack-architecture.html |publisher=[[NY Times]] |date=2024-05-31| access-date=2024-07-03}}</ref> is the process of items shrinking in size or quantity while the prices remain the same.<ref>{{cite web |date=28 May 2018 |title=Shrinkflation: When less is not more at the grocery store |url=http://theconversation.com/shrinkflation-when-less-is-not-more-at-the-grocery-store-97240 |access-date=2021-09-14 |website=The Conversation}}</ref><ref name="stlouisfed">{{Cite web |title=Beyond Inflation Numbers: Shrinkflation & Skimpflation |author= |work=stlouisfed.org |date= |access-date=24 November 2024 |url= https://www.stlouisfed.org/publications/page-one-economics/2022/12/01/beyond-inflation-numbers-shrinkflation-and-skimpflation |quote=Businesses know that for some goods and services, consumers are more sensitive to changes in price than to changes in quantity, and this tendency often allows businesses to benefit from shrinkflation. }}</ref> The word is a [[portmanteau]] of the words ''shrink'' and ''inflation''.  '''Skimpflation''' involves a reformulation or other reduction in quality.<ref name=":1" />

Shrinkflation allows manufacturers and retailers to manage rising production costs while maintaining sales volume, [[operating margin]], and profitability, and is often used as an alternative to raising prices in line with [[inflation]].<ref>{{Cite web |title=Getting less for the same price? Explore how the CPI measures "shrinkflation" and its impact on inflation |last=McNair |first=Kari |work=Bureau of Labor Statistics |date=2 February 2023 |access-date=24 November 2024 |url= https://www.bls.gov/opub/btn/volume-12/measuring-shrinkflation-and-its-impact-on-inflation.htm |quote=As input costs increase and costs to create a product rise, companies can increase the list price of a good or they can offer a smaller amount of the product for the same price. So, a candy bar’s size might change from 1.6 ounces to 1.5 ounces, yet the price stays the same. In other words, the price per unit the consumer pays increases as the amount they purchase decreases, while the price they pay at the register remains the same. Downsizing is common across food and household commodities, including potato chips, paper towels, cereal, cleaning supplies, and candy. Manufacturers change sizes because market research indicates that consumers are more sensitive to price change than size change. }}</ref><ref name="stlouisfed" /> [[Consumer protection]] groups are critical of the practice.

== Economic definition ==
[[File:Fineness of early Roman Imperial silver coins.png|thumb|A parallel to shrinkflation is [[Debasement|currency debasement]]. This graph shows decline in coin silver content over the history of the [[Roman Empire]].|250x250px]]
Shrinkflation is a rise in the general [[price level]] of goods per unit of weight or volume, brought about by a reduction in the weight or size of the item sold.<ref>{{Cite web |date=2024-04-17 |title=Shrinkflation 101: Less Bang For Your Buck – Michigan Journal of Economics |url=https://sites.lsa.umich.edu/mje/2024/04/17/shrinkflation-101-less-bang-for-your-buck/ |access-date=2025-02-11 |language=en-US}}</ref> The price for one piece of the packaged product remains the same. This sometimes does not affect [[inflation]] measures such as the [[consumer price index]] or [[Retail Price Index]], i.e. it might not increase in the cost of a basket of retail goods and services,{{Citation needed|date=July 2017}} but many indicators of price levels and thus inflation are linked to units of volume or weight of products, so that shrinkflation also affects the statistically represented inflation figures.

The first use of the term ''shrinkflation'' with its current meaning has been attributed to the economist [[Pippa Malmgren]], though the same term had been used earlier by historian Brian Domitrovic to refer to an economy shrinking while also suffering high inflation.<ref>{{cite web |title=That Shrinking Feeling |url=https://www.merriam-webster.com/words-at-play/shrinkflation-words-were-watching |access-date=21 January 2019 |website=Merriam Webster Dictionary}}</ref>

== Causes ==
Barak Orbach, an academic economist, argues that competition typically drives shrinkflation: "When supply shocks or other factors inflate production costs, businesses must pass on cost increases to maintain profitability. However, in competitive markets, direct price increases are risky. Under such conditions, businesses often choose to raise prices indirectly through downsizing."<ref>{{cite web |title=Do Antitrust Enforcers Know They Induce Shrinkflation? |url=https://www.promarket.org/2023/08/18/do-antitrust-enforcers-know-they-induce-shrinkflation/ |access-date=17 February 2024 |website=ProMarket|date=18 August 2023 }}</ref>{{Unreliable source?|date=November 2024}} 

Without explicitly using the term ''shrinkflation'', macroeconomist Vivek Moorthy much earlier documented and analysed the shrinkage effect of inflation, explaining it by Arthur Okun’s "invisible handshake" approach: "Prices are ... based on notions of trust and fairness. it is considered acceptable for firms to respond to cost increases, but not to demand increases. Firms selling a branded product will make deliberate efforts to continue selling at the same price thereby retaining loyal customers. Hence, to cope with inflation, fast moving consumer goods firms would often resort to shrinking the product size to avoid raising prices."<ref name=":0">{{Cite book |last=Moorthy |first=Vivek |title=Applied Macroeconomics Employment, Growth and Inflation |publisher=I.K. International Publishing House Pvt.Ltd |year=2017 |isbn= |edition=Ist |location=Delhi |publication-date=2017 |pages=Section 3.5 The Rationale for cost based price pp 78}}</ref>

== Consumer impact ==
[[File:SPAR_varehandel_hyller_(Supermarket_GROCERY_store_aisle_shelves)_Heinz_ketchup_NORWAY_2023-08-31_(cropped).jpg|thumb|Many grocery stores provide [[Unit price information in supermarkets|unit price information]] for all products. In this Norwegian grocery store, the price for a bottle of ketchup is displayed in terms of the price paid per package (64.90 [[Norwegian krone|kr]]) as well as the paid paid per kilogram (111.90 kr).  This allows customers to see how much they will pay and to quickly compare products that have different sizes of packages.]]
Consumer advocates are critical of shrinkflation because it has the effect of reducing product value by "stealth".<ref>{{cite news |title=Shrinkflation boycotts: have you joined the uprising against downsizing?|url=https://www.theguardian.com/lifeandstyle/2023/jun/06/shrinkflation-boycotts-have-you-joined-the-uprising-against-downsizing |access-date=22 January 2025 |publisher=Guardian News & Media |date=6 June 2023 |location=London, UK}}</ref> The reduction in pack size is sufficiently small as not to be immediately obvious to regular consumers.<ref>{{cite web |author-last=Sewraz |author-first=Reena |title=Shrinkflation: the food and drink items that have shrunk but aren't any cheaper |url=https://www.lovemoney.com/news/62625/shrinkflation-uk-groceries-food-drink-smaller-size-same-price |website=lovemoney.com |access-date=7 July 2020 |location=London, UK |date=21 February 2017 |quote=Ratula Chakraborty, senior lecturer in business management at the University of East Anglia, said: "Shrinkflation is a sneaky practice because consumers are not expecting any size changes so do not inspect package sizes unless there is a really noticeable difference."}}</ref> An unchanged price means that most consumers will not immediately notice the higher [[unit price]], which adversely affects consumers' ability to make informed buying choices. Consumers have been found to be deterred more by rises in prices than by reductions in pack sizes, and some customers would rather have a smaller package at the old price than the old package size at a higher price.<ref name=":1" />

Suppliers and retailers have been called upon to be upfront with customers. According to Ratula Chakraborty, a professor of [[business management]], they should be legally obliged to notify shoppers when pack sizes have been reduced.<ref>{{cite web |author-last=Studman |author-first=Anna |title=Shrinking products: are we paying more for less? |url=https://www.which.co.uk/news/2019/02/shrinking-products-are-we-paying-more-for-less/ |website=Which? |access-date=7 July 2020 |location=London, UK |date=23 February 2019 |archive-date=18 January 2021 |archive-url=https://web.archive.org/web/20210118011824/https://www.which.co.uk/news/2019/02/shrinking-products-are-we-paying-more-for-less/ |url-status=dead}}</ref>  In 2023 the French grocery chain [[Carrefour]] has started to warn their customers about these practises.<ref name="Merkur_2023">{{cite news |date=2023-09-09 |title=Carrefour warnt vor versteckten Preiserhöhungen |url=https://www.merkur.de/wirtschaft/carrefour-warnt-vor-versteckten-preiserhoehungen-zr-92509987.html |url-status=live |archive-url=https://web.archive.org/web/20230916083210/https://www.merkur.de/wirtschaft/carrefour-warnt-vor-versteckten-preiserhoehungen-zr-92509987.html |archive-date=2023-09-16 |access-date=2023-09-16 |website=[[Merkur.de]] |department=Wirtschaft |publisher=Münchener Zeitungs-Verlag GmbH & Co. KG |language=de}}</ref><ref name="Ammann_2023">{{cite web |author-last=Ammann |author-first=Lucas |date=2023-09-15 |title=Erstmals warnt eine Supermarktkette vor versteckten Preiserhöhungen - Eine französische Supermarktkette hängt Warnschilder aus und warnt somit vor "Shrinkflation". Sogar ein Gesetz ist vorgesehen. |url=https://kurier.at/politik/ausland/shrinkflation-frankreich-inflation-teuerung-supermarktkette-carrefour-foodwatch/402595283 |url-status=live |archive-url=https://web.archive.org/web/20230915183318/https://kurier.at/politik/ausland/shrinkflation-frankreich-inflation-teuerung-supermarktkette-carrefour-foodwatch/402595283 |archive-date=2023-09-15 |access-date=2023-09-15 |work=[[Kurier]] |language=de-AT}}</ref>

Corporate bodies deflect attention from product shrinkage with "[[less is more (architecture)|less is more]]" messaging, for example by claiming health benefits of smaller portions or environmental benefits of less packaging.<ref name="Goldcore">{{cite news |title=ECB Meets To Tackle Deflation While Ignoring Shrinkflation |url=https://news.goldcore.com/us/gold-blog/ecb-meets-to-tackle-deflation-while-ignoring-shrinkflation/ |access-date=7 July 2020 |publisher=Goldcore |date=4 September 2014 |location=London, UK}}</ref>{{Unreliable source?|date=November 2024}} 

Shrinkflation is not the only cause of reduced package sizes. In some cases, such as [[junk food]], some customers do prefer smaller package sizes.<ref name=":1" />

In other cases, the change is part of a trend to adjust package sizes.  In 2003, [[Dannon]] shrunk its [[yogurt]] containers from 8 ounces to 6 ounces, because consumers thought their larger product was too expensive overall; many, though not all, of the grocery stores selling it maintained the old price for the smaller product.<ref name=":2">{{cite news | url=https://www.nytimes.com/2003/05/03/business/yogurt-makers-shrink-the-cup-trying-to-turn-less-into-more.html | title=Yogurt Makers Shrink the Cup, Trying to Turn Less into More | work=The New York Times | date=3 May 2003 | last1=Day | first1=Sherri }}</ref>  Most yogurt manufacturers followed suit, resulting in smaller packages.<ref name=":1" /><ref name=":2" />

== Just-noticeable difference ==
{{main|Just-noticeable difference}}
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In [[experimental psychology]], a ''just-noticeable difference'' is the amount something must be changed for a difference to be noticeable.<ref>{{cite web|title=Weber's Law of Just Noticeable Difference|publisher= University of South Dakota|url= http://apps.usd.edu/coglab/WebersLaw.html}}</ref> Discovered by [[Ernst Heinrich Weber]], the ''JND'' is a fixed proportion of the reference sensory level, and so the ratio of the JND/reference is roughly constant:
<math display="block">\frac {\Delta I} {I} = k</math>
where <math>I\!</math> is the original intensity of the particular stimulation, <math>\Delta I\!</math> is the addition to it required for the change to be perceived, and ''k'' is a constant. Weber's law has important applications in [[marketing]]. Manufacturers and marketers endeavor to determine the relevant JND for their products for two very different reasons:

# Negative changes (e.g. reductions in product size or quality, or increase in product price) are not discernible to the public (i.e. remain below JND) and
# Product improvements (e.g. improved or updated packaging, larger size or lower price) are very apparent to consumers without being wastefully extravagant (i.e. they are at or just above the JND).

When it comes to product improvements, marketers very much want to meet or exceed the consumer's differential threshold; that is, they want consumers to readily perceive any improvements made in the original products. Marketers use the JND to determine the amount of improvement they should make in their products. Less than the JND is wasted effort because the improvement will not be perceived; more than the JND is again wasteful because it reduces the level of repeat sales. On the other hand, when it comes to price increases, less than the JND is desirable because consumers are unlikely to notice it.

== Statistics ==
The UK [[Office for National Statistics]] wrote in 2019, "We identified 206 products that shrank in size and 79 that increased in size between September 2015 and June 2017. There was no trend in the frequency of size changes over this period, which included the EU referendum. The majority of products experiencing size changes were food products and in 2016, we estimated that between 1% and 2.1% of food products in our sample shrank in size, while between 0.3% and 0.7% got bigger. We also observed that prices tended not to change when products changed size, consistent with the idea that some products are undergoing 'shrinkflation'."<ref name="ONS">{{cite web |url=https://www.ons.gov.uk/economy/inflationandpriceindices/articles/theimpactofshrinkflationoncpihuk/howmanyofourproductsaregettingsmaller |publisher=[[Office for National Statistics]] |title=Shrinkflation: How many of our products are getting smaller? |access-date=2021-03-13}}</ref>

{{wide image|Impact of Shrinkflation on CPIH (UK) 2012 - 2017.png|align-cap=center|700px|Impact of Shrinkflation on CPIH in the UK, with the number of food price quotes that saw a change in package size per month}}

In the United States, the [[Bureau of Labor Statistics]] has written that "the impact of product downsizing at the all commodity and services level is minimal, with an average annual effect of 0.01 percent per year, so while consumers may notice shrinkflation at the grocery store, it has a very small impact the overall inflation picture they face."<ref name="BLS">{{cite web | url=https://www.bls.gov/opub/btn/volume-12/measuring-shrinkflation-and-its-impact-on-inflation.htm | title=Getting less for the same price? Explore how the CPI measures "shrinkflation" and its impact on inflation }}</ref>

==Examples==

[[File:Shrinkflation in Dove soaps 100g 2022 and 90g 2023.jpg|thumb|An example of shrinkflation: Dove soap bars were made 10% smaller in 2022|250x250px]]

{{List missing criteria|date=November 2023}}

* [[Coffee]] sold in 1&nbsp;lb (453.6&nbsp;g) bags shrank to 400&nbsp;g or smaller in the 1980s.<ref name=":1" />
* In India in 2008, Procter and Gamble reduced the pack size of its detergent Tide from 1&nbsp;kg to 850&nbsp;g while maintaining the same price. Similarly around 2012, Orbit reduced the chewing gum pack size from 6 to 5 units, keeping the price at Rs. 5. In 2013 the staple breakfast item idli was shrunk from 100&nbsp;g to 75&nbsp;g, as reported in the Bangalore Mirror.<ref>Moorthy Vivek "Understanding Stagflation—Past and Present" [[McGraw Hill Education]] (India) 2014, pp. 79-80 {{ISBN|978-93-392-0334-4}}</ref>
* In January 2009, [[Häagen-Dazs]] announced that it would be reducing the size of their ice cream cartons in the US from 16 US fl oz (470&nbsp;ml) to 14 US fl oz (410&nbsp;ml).<ref name="York">{{cite web |url=http://adage.com/article/news/ben-jerry-s-calls-haagen-dazs-shrinking-packaging/135126/ |title=Ben and Jerry's Calls Out Haagen-Dazs on Shrinkage |date=2009-03-09 |access-date=2015-11-22 |website=adage.com |publisher=Advertising Age |author-last=York |author-first=Emily Bryson}}</ref><ref name="partysugar">{{cite web |url=http://www.popsugar.com/food/Haagen-Dazs-Shrinks-Package-Ben-Jerry-Outraged-2906900 |title=Ben and Jerry's vs. Haagen-Dazs: A Pint-Sized Battle |date=2009-03-10 |access-date=2015-11-22 |website=popsugar.com |publisher=POPsugar}}</ref>
* In 2010, [[Kraft]] reduced its 200&nbsp;g [[Toblerone]] bar to 170&nbsp;g.<ref name="Ten"/>
* [[Tetley]] tea bags were sold in boxes of 88 instead of 100.<ref name="Ten"/>
* [[Nestlé]] reduced its [[After Eight]] Mint Chocolate Thins box from 200&nbsp;g to 170&nbsp;g.<ref name="Ten"/>
* Cadbury's [[Crunchie]] were sold in packs of three instead of four.<ref name="Ten">{{cite web |url=https://www.mirror.co.uk/news/uk-news/vat-rises-but-food-shrinks-270431#ixzz341XMoHMj |publisher=[[Daily Mirror]] |title=VAT rises but food shrinks |date=19 December 2010 |access-date=2014-06-09}}</ref>
* In 2015, [[Cadbury Fingers]] removed two fingers from each pack, reducing the weight of a pack from 125 grams to 111 grams.<ref>{{cite web |url=https://www.thejournal.ie/cadbury-fingers-smaller-packs-2048354-Apr2015/ |title=There are now TWO fewer Cadbury Fingers in every pack|date=14 April 2015 }}</ref>
* In July 2015, a tub of [[Cadbury Roses]] which weighed 975&nbsp;g in 2011, was reduced to under 730&nbsp;g, while a tub of Cadbury [[Heroes (confectionery)|Heroes]] was reduced to 695&nbsp;g. However the price remained the same at around £9.<ref name="Cad">{{cite web |url=http://www.express.co.uk/news/uk/592363/Heroes-Roses-latest-chocolate-treat-shrink-in-size-price-stays-same |publisher=[[Daily Express]] |title=Cadbury take ELEVEN CHOCS from Heroes and Roses tubs but price stays same |date=20 July 2015 |access-date=2016-11-27}}</ref>
* In 2016, [[Terry's Chocolate Orange]] was reduced from 175&nbsp;g to 157&nbsp;g by changing the moulded shape of each segment to leave an air gap between each piece.<ref>{{cite web |access-date=2019-10-24 |title=Terry's Chocolate Orange doubles in price in some supermarkets |url=https://inews.co.uk/inews-lifestyle/food-and-drink/shrinking-terrys-chocolate-orange-doubles-price-supermarkets-517170 |website=inews.co.uk |date=27 November 2017}}</ref>
* In 2016, [[Mondelez International]] again [[Toblerone#2016 size changes|reduced the size]] of the [[UK]] 170&nbsp;g [[Toblerone]] bar to 150&nbsp;g, while the 400&nbsp;g bar was reduced to 360&nbsp;g. This was done by enlarging the gap between the chocolate triangles.<ref name="toblerone">{{cite news |url=https://www.bbc.com/news/uk-37904703 |title=Toblerone triangle change upsets fans |work=BBC News |date=8 November 2016 |access-date=2016-11-08}}</ref>
* In 2017, Milka Alpine Milk and Milka Nuts & Raisins got reduced from 300&nbsp;g to 270&nbsp;g while Triolade got reduced from 300&nbsp;g to 280&nbsp;g, all without changing the bag size.<ref>[https://zpravy.aktualne.cz/finance/nakupovani/milka-se-nenapadne-zmensuje-cena-ale-zustava-stejna-obalove/r~bc80e024f45d11e7be860cc47ab5f122/ Milka se nenápadně zmenšuje, cena ale zůstává stejná. Obalové triky jen tak nepoznáte - Aktuálně.cz<!-- Bot generated title -->]</ref>
* In 2017, [[McVities]] reduced the number of Jaffa Cakes in every standard packet from 12 to 10, raising the cost per cake from 9.58&nbsp;p to 9.9&nbsp;p.<ref name="Jaffa">{{cite web |url=https://www.theguardian.com/business/2017/sep/26/jaffa-cakes-pack-size-cut-shrinkflation-mcvities-cadbury |title=Jaffa Cakes packet size reduced in latest 'shrinkflation' move |work=[[The Guardian]] |date=26 September 2017 |access-date=2017-09-26}}</ref>
* In 2020, [[Unilever]] reduced the size of [[Ben & Jerry's]] ice-cream tubs in Europe, going from 500&nbsp;ml to 465&nbsp;ml, whilst still retaining the [[List price#United Kingdom|RRP]] of around 5&nbsp;euros. Despite this, Unilever has publicly criticized rival ice-cream brands for shrinkflation in the United States, where Ben & Jerry's ice-cream is still sold in [[Pint#US liquid pint|pint]]-sized (473&nbsp;ml) tubs.<ref name="York"/><ref name="partysugar"/>
* In 2021, [[General Mills]] shrunk their family-sized boxes of cereal down from 19.3&nbsp;ounces to 18.1&nbsp;ounces. That means the unit cost per ounce of the product has increased, but for the consumer, the average price in the United States remained $2.99.<ref>{{cite news |author-last=Rosalsky |author-first=Greg |url=https://www.npr.org/sections/money/2021/07/06/1012409112/beware-of-shrinkflation-inflations-devious-cousin |title=Beware Of 'Shrinkflation,' Inflation's Devious Cousin |work=[[Planet Money]] |publisher=[[NPR]] |date=2021-07-06 |access-date=2021-07-07}}</ref>
* In 2022, [[Procter & Gamble]] reduced the number of double-ply sheets per roll of [[toilet paper]] from 264 to 244 sheets in the 18-count mega package. This amounts to approximately a roll and a half in the 18-count package.<ref>{{cite news |author-last=Kavilanz |author-first=Parija |url=https://www.cnn.com/2022/03/08/business/toilet-paper-roll-shrinking-inflation/index.html |title=Your toilet paper roll is slimming down |work=[[CNN Business]] |date=2022-03-08 |access-date=2022-03-08}}</ref>   
* In 2022, Unilever reduced the size of [[Dove (toiletries)|Dove soap]] bars from 100&nbsp;g to 90&nbsp;g, with most retailers either maintaining the same price or increasing prices.<ref>{{Cite web |author-last=Leonard-Bedwell |author-first=Niamh |title=Unilever shrinks Dove Beauty Bar packs as cost inflation bites |url=https://www.thegrocer.co.uk/healthcare-beauty-and-baby/unilever-shrinks-dove-beauty-bar-packs-as-cost-inflation-bites/670093.article |access-date=2023-07-31 |website=The Grocer |language=en}}</ref>
* In 2023, researchers conducted a study<ref>{{Cite web |date=2023-06-06 |title=Visualizing Shrinkflation in Different Industries |url=https://www.coventrydirect.com/blog/visualizing-shrinkflation-in-different-industries/ |access-date=2023-08-25 |website=Coventry Direct |language=en-US}}</ref> on products known to have shrunk in size but not in price. They found that the average reduction percentage of the product sizes was 11.84%, which the researchers then applied to various other products to demonstrate the absurd effect of shrinking product sizes. 
* In 2023, [[Mars, Incorporated]] reduced the weight of their Whiskas cat food by 15%, reducing the weight of each pouch from 100&nbsp;g to 85&nbsp;g. The price of the packs did not change. This was applicable to their 12×100&nbsp;g, 40×100&nbsp;g, 80×100&nbsp;g, and individual products for both the "in jelly" and "in gravy" products.<ref>{{cite news |title=Whiskas shaves 15g off packets – but still charges same price |url=https://www.telegraph.co.uk/business/2023/01/25/cat-food-shrinks-whiskas-shaves-15g-packets/ |access-date=7 April 2023 |agency=The Telegraph |date=26 January 2023}}</ref>

==Legislation==
In 2024, a bill was introduced in the U.S. Senate which would ban shrinkflation.<ref>{{cite web |title=S.3819 - Shrinkflation Prevention Act of 2024 |url=https://www.congress.gov/bill/118th-congress/senate-bill/3819/text |website=congress.gov |date=22 May 2024 |access-date=18 September 2024}}</ref> A separate bill, introduced in the U.S. House of Representatives, would require brands to label products that contain less product than before at the same price.

==Related terminology==
In October 2021, [[NPR]]'s [[Greg Rosalsky]] from ''[[Planet Money]]'' proposed the term '''skimpflation''' to refer to a degradation in the quality of services while keeping the price constant, such as a [[hotel]] offering a more meager [[breakfast]] or reducing the frequency of [[housekeeping]].<ref>{{cite news |author-last=Rosalsky |author-first=Greg |title=Meet skimpflation: A reason inflation is worse than the government says it is |url=https://www.npr.org/sections/money/2021/10/26/1048892388/meet-skimpflation-a-reason-inflation-is-worse-than-the-government-says-it-is |access-date=30 October 2021 |work=NPR |date=26 October 2021}}</ref> In 2023, ''[[Guardian Money]]'' described a number of ingredient changes in British supermarket foods – such as a brand of mayonnaise changing from 9% egg yolk to 6% egg and 1.5% egg yolk – as an example of skimpflation.<ref>{{cite news |author-last=Osborne |author-first=Hilary |title='Skimpflation': how supermarkets reduce the quality of what you buy |url=https://www.theguardian.com/money/2023/jul/22/uk-supermarkets-skimpflation-prices-pack-sizes |access-date=11 August 2023 |work=The Guardian |date=22 July 2023}}</ref>

Unlike changes to the size and weight of a product, skimpflation is more difficult to measure in a standardized way, and consequently goes unrecorded in measurements of inflation.<ref name=":1">{{Cite news |last=Smialek |first=Jeanna |date=1 March 2024 |title=Shrinkflation 101: The Economics of Smaller Groceries |url=https://www.nytimes.com/2024/03/01/business/economy/shrinkflation-groceries.html |work=[[The New York Times]] |quote=While ‘shrinkflation’ gets measured, ‘skimpflation’ does not. Shrinking itself is captured in official inflation data, but another sneaky force that costs consumers is getting missed in the statistics. Companies sometimes use cheaper materials to save on costs in a practice some call “skimpflation.” That is much harder for the government to measure.}}</ref>

Conversely, in September 2022, Izabella Kaminska's ''The Blind Spot'' published an article that proposed the term '''shitflation''' in reference to maintaining a product's price while decreasing quality.<ref>{{cite web | url=https://the-blindspot.com/hi-shrinkflation-meet-your-cousin-shitflation/ | title=Hi Shrinkflation, Meet Your Cousin Shitflation | date=2 September 2022 }}</ref>{{Unreliable source?|date=November 2024}}  The article's author, Dario Garcia Giner, proposed that shrinkflation and shitflation spoke to the [[Grossman-Stiglitz Paradox|Grossman-Stiglitz paradox]], and argued they were akin to "Trojan horses buried in the heart of mainstream finance — just waiting to tear down the system by discombobulating relative values in the big-data spreadsheets that central bankers and financiers depend on to manage economic allocation."

==Popular usage==
The term has been used by President [[Joe Biden]] in 2023 and 2024 to blame companies for deploying this tactic to increase their profits, deflecting criticism about inflation during [[Biden administration|his administration]] and instead pinning the blame on big business.<ref>{{Cite web |date=2024-03-08 |title=Biden calls out 'shrinkflation' as part of a broader strategy to reframe how voters view the economy |url=https://apnews.com/article/biden-state-of-union-shrinkflation-7bb0d90a7736431fa44505643009b05d |access-date=2024-03-14 |website=AP News |language=en |quote=The president’s focus on shrinkflation is part of a broader strategy to reframe how voters think about the economy before the November election. Biden is trying to deflect criticism about high prices and instead pin the blame on big business.}}</ref> Biden's claim has been criticized, with some [[Conservatism in the United States|conservatives]] arguing that his [[Economic policy of the Joe Biden administration|economic policies]] and the [[Inflation Reduction Act]] were the primary cause of price increases and shrinking products.<ref>{{Cite web |last=Venegas |first=Natalie |date=2024-02-11 |title=Conservatives mock Biden's "shrinkflation" video about Super Bowl snacks |url=https://www.newsweek.com/joe-biden-sparked-criticism-over-shrinkflation-super-bowl-video-1868901 |access-date=2024-03-14 |website=Newsweek |language=en}}</ref><ref>{{Cite web |title=Biden planning to hit food 'shrinkflation,' corporate greed in SOTU |author= |work=POLITICO |date= 23 February 2024|access-date=26 November 2024 |url= https://www.politico.com/news/2024/02/23/biden-food-shrinkflation-sotu-00142773 |quote=Republicans are highly critical of those White House claims, arguing it’s Biden’s policies that are fueling inflation, not corporations jacking up prices. And even some Democratic economists remain skeptical about how much of the price increases can be pinned on so-called “greedflation.” }}</ref>

== See also ==
{{Portal|Economics}}
* [[Purchasing power]]
* [[Real versus nominal value (economics)]]
* [[Deflation]]
* [[Consumerist#"The Grocery Shrink Ray"|"The Grocery Shrink Ray"]]
* [[Size–weight illusion]]
* [[Deceptive packaging]]
* [[Consumer protection]]
* {{ill|Grundpreisverordnung|de}} - German law to specify prices per 1 kilogram, 1 litre, 1 cubic metre, 1 metre or 1 square metre for easier comparison - part of PAngV
* [[Enshittification]]
* [[Price gouging]]
* [[Stagflation]]

==References==
{{Reflist}}

==External links==
* [https://www.ons.gov.uk/economy/inflationandpriceindices/articles/theimpactofshrinkflationoncpihuk/january2012tojune2017 The impact of Shrinkflation on the CPIH: January 2012 to June 2017]
* [https://www.atulhost.com/shrinkflation-the-economics-of-stealing-from-customers Shrinkflation – the economics of stealing from customers]
{{economics}}

[[Category:Inflation]]
[[Category:Deception]]
[[Category:Packaging]]